how a basic unfair dismissal award is calculated
How the basic awards are calculated
The basic award is only one award for unfair dismissal there are others that an employee may be entitled to. It is one of simple calculation using a number of variables and is simply worked out by taking the employee’s age the years of service and average weekly wage to determine a figure.
The weekly wage is limited to a maximum of £330.00 a week and the maximum number of service is limited to 20 years and the years of service also depend upon the age of the employee.
The calculation is as follows and applies for the years of service.
If the Age of the employee is less than 22 years, the weekly pay is multiplied by 0.5
If the age of the employee is between 22 and 41 the weekly pay is multiplied by 1
If the age of the employee is from 41 onwards, the weekly pay is multiplied by 1.5
This means the maximum award value would be 9.9k based on 20 years service at £330 x 1.5
It is important to note that award deductions can be made by the tribunal if the employee has already received redundancy payments, refuses an offer to be reinstated, is to blame for their own dismissal or has past bad conduct within the business.
